The Internal Revenue Service (IRS) and the Treasury Department have confirmed that they are in the process of successfully disbursing the second batch of advance monthly payments worth approximately $15 billion from the expanded Child Tax Credits, but there are still reports abound that parents have yet to see the funds in their respective bank accounts.
According to the agencies, one glitch is due to an unspecified issue, and that up to fifteen percent of families who received the payment in July via direct deposit now will be getting a paper check via the post office this month.
“Like the first payments, the vast majority of families will receive these payments by direct deposit,” the IRS noted in a release. “For those affected, no additional action is needed for the September payment to be issued by direct deposit. Families can visit the Child Tax Credit Update Portal to see if they’re receiving a direct deposit or paper check this month.”
Getting one’s hands on the Child Tax Credits via traditional mail could potentially take a week or longer. “Be sure to allow extra time for delivery by mail through the end of August,” the agency advised.
Glitch No. 2
Do take note that after sending out last month’s Child Tax Credit payments, the IRS admitted that some “mixed-status” families—those with one parent who is a U.S. citizen and the other who is an immigrant—didn’t immediately see the funds in their bank accounts.
The agency confirmed that the nonpayment was indeed a mistake and proper steps have been taken to rectify the matter.
Lacking Necessary Information
Other eligible parents who may have not received their tax credits might not have the required information—such as an address and routing and bank account numbers—on file at the tax agency. Due to this issue, a recent report released by the Center on Budget and Policy Priorities has indicated that roughly four million children from low-income families are at risk of not receiving any funds from the expanded credits.
For months, the IRS has asserted that the fastest way for Americans to get their hands on the credits or any of the three stimulus checks is to file a federal tax return as soon as possible. The public can also take advantage of the recently launched Non-filer Sign-up Tool, which will help disburse the credits promptly.
The expanded Child Tax Credits, approved under President Joe Biden’s American Rescue Plan last spring, now allow eligible parents to collect as much as $3,600 per year for a child under the age of six and up to $3,000 for children between ages six and seventeen. Broken down, that means a $250 or a $300 payment for each child will be deposited each month through the end of the year.
Ethen Kim Lieser is a Washington state-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.